Movie Insider

Subscribe to The Dispatch

Already a subscriber?
Enroll in EZPay and get a free gift!
Enroll now.

By Mae AndersonAssociated Press • Tuesday December 24, 2013 2:04 AM

ATLANTA — Listen up, Santa. Headphones, speakers and other audio gear are topping the holiday
gift lists of many Americans.

Audio equipment is among the top-selling electronics gifts this holiday season, accounting for
13 percent of the $8 billion in consumer-electronics sales from Nov. 24 to Dec. 7, said the
research firm NPD Group.

The trend is being driven in part by the economy. Audio gear, which can range from less than $10
for ear buds to thousands of dollars for a home-theater system, is being considered by some an
affordable luxury in a still-shaky economy.

Americans also have spent the past several years buying tablets, smartphones and TVs. Now, many
are looking for ways to squeeze better sound from those gadgets.

“It stands to reason that people at some point want a better audio experience than the ear buds
you get in the box,” said Ben Arnold, NPD’s director of industry analysis.

Indeed, Drew Smith, 21, began coveting better headphones when he got an iPhone 5 in August. Now,
headphones are the only big present he’s asking his parents for.

“Because of my smartphone, I listen to more music and … I want a good set,” said Smith, a cinema
manager who lives in Paragould, Ark.

Likewise, Adam Daniels, 23, a commercial banker from Sharonville, Ohio, near Cincinnati, decided
to buy a Philips sound bar for his parents for Christmas after they bought a 50-inch TV. “They have
a great TV, but the audio on it is terrible,” he said.

The trend this season is a continuation of an audio craze that started last year. That’s when
Beats by Dr. Dre — oversize headphones that come in different colors and run about $200 a pair —
was the “it” holiday gift.

Beats doesn’t give sales figures. But the company said it grew its share of the market for
headphones costing more than $99 from 71 percent last year to 78 percent this year.

Some competitors also have upped their sound game. This year, stores and analysts say Bowers
& Wilkins, Bose, Jawbone and JBL are among the manufacturers offering more products, colors and
stylish designs.

“Audio has been really popular this holiday,” said Josh Davis, manager of Abt Electronics, a
large electronics store in Chicago. “Last year, it seemed like all anyone wanted was Beats. … But
we’re seeing good competition this year among other brands.”

Prices have fallen for some audio gear. For instance, the average selling price of wireless
speakers dropped 33 percent from last year, to $73, NPD said.

Best Buy, Amazon and other stores have offered deep discounts on some audio gear.

Target, which says sales of headphones, wireless speakers and sound bars have “increased
significantly” this year, offered deals on the day after Thanksgiving known as Black Friday. They
included the Beats Solo HD Headphones for $119 from $179.99; Sony Bluetooth speakers for $49.99
from $89.99; and a JBL sound bar for $99.99 from $199.

The deals influenced Rob Patak, 29, to give headphones as gifts for his roommate and friend.
Patak, a customer-support manager at a software company in Washington, D.C., bought wireless
speakers at Marshall’s for $20. And when he saw that Amazon was offering $50 off $100 Plantronics
Backbeat Go headphones, he snapped up two pairs.

Price also was a consideration for Jeremy Sylestine, 34, a prosecutor in Austin, Texas. He had
been searching for a sound bar for his 40-inch TV last year but couldn’t find one for a good price.
This year, though, he bought a Samsung sound bar for $184, which was $70 off the original
price.